Andaz Macau, the second of the two new hotels in Phase 3 of the Galaxy Macau casino resort, is “expected to fully open all 700 rooms by Chinese New Year [CNY] 2024,” says a Thursday note from CBRE Securities LLC, referring to an important holiday period in mainland China.
The property – run by Macau casino operator Galaxy Entertainment Group Ltd – launched on September 15. The accommodation is directly connected to Galaxy International Convention Center (GICC) and the 16,000-seat Galaxy Arena, both of which launched earlier this year.
On Thursday, Galaxy Entertainment reported third-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of HKD2.77 billion (US$354.2 million), on net revenue that rose by 11.4 percent sequentially, to HKD9.65 billion.
“The company should begin to see return on investment accelerate from recently-opened projects, including GICC, Galaxy Arena, Raffles at Galaxy Macau, and Andaz Macau,” wrote CBRE’s analysts John DeCree and Max Marsh.
The Raffles at Galaxy Macau hotel tower had a soft opening to the public in mid-August.
“Management spoke positively to October trends, with market share continuing to grow and hotels fully occupied during [autumn] Golden Week,” said CBRE in commentary following the firm’s third-quarter call with investment analysts.
“Galaxy’s total mass-market gross gaming revenue in fourth quarter to date is now at 110 percent to 120 percent of 2019 levels,” added the CBRE analysts.
In its earnings filing, the casino firm said it was “focused on the development of Phase 4” of Galaxy Macau, which “is already well under way”.
Phase 4, scheduled to be completed in 2027, is to include “multiple high-end hotel brands,” as well as a 4000-seat theatre, retail and a water resort deck. “We will continue to adjust the development timeline in accordance with the market demand,” stated the company.
CBRE suggested that aside from company investments, “infrastructure improvements shouldcontinue to lift the whole [Macau] market”.
The institution forecast Galaxy Entertainment’s net revenue to reach HKD10.76 billion in the fourth quarter, with adjusted EBITDA of nearly HKD3.37 billion.
